This is the Las Vegas real estate Market report on new homes for
the second quarter of 2006. Thanks reading this special report of what has
happened in Las Vegas real estate.
The market in Las Vegas has been extremely active for many years now with
appreciation of 46% in 2004 and 15% in 2005 we have see the prices and demand for
homes increase as investors and home owners have raced to get their peace of this
escalating real estate market. The slowing of the market has been do to increased supply
of new housing, an increase in condo conversions, increases in interest rates and the
liquidation of homes by speculators. We saw fewer buyers in the market place in 2005.
We have seen even fewer Buyers in 2006 as well but the number of New homes sold has
not decreased to date from 2005 (#88)The New home closings held steady in both
quarters with the 2005 closings. (#90) Over all the Las Vegas Total home closings grew
in the first quarter but was down slightly in the 2nd quarter in comparison to the 2005
figures.
(#83) The number of new home communities grew in 2006 to an all time high of 503 subdivisions selling new product currently in the Greater Las Vegas area.
Because(#91) new homes continue to perform well in the market place we have seen the
median price of a new home raise to nearly $322,000. If you will notice this upward trend
has only increased slightly in 2006 with the heaviest increases having taken place in the
last quarter of 2005. Interestingly enough the median price of existing homes (#92) has
also increased to nearly $280,000.
(#95) If your in the market for million dollar plus homes the total closings for this Luxury
home market increased by 19 units to 297 closings in the 2nd quarter. (#93) The New
home segment of this luxury market decreased slightly by 1 home from last year to day.
(#99) The top ten selling new home Planned communities in Greater Las Vegas for the
2nd quarter are displayed here. Keep in mind that it takes approximately 8 months from
the time construction begins to the completion and sale of a new home. This chart
represents closings in these neighborhoods.
(#98) The top 10 Builders in Las Vegas are displayed here by the numbers of homes
closed in the 2nd quarter of 2006. Not that #1 is Apartment/Conversions which are all
apartments that have been converted to condos and sold in the 2nd quarter.
(#161) The question has been posed by many a boom/bust speculator in the newspapers
that the Bubble will burst for Las Vegas real estate investors. One reason is they point to
the sudden increase in sales inventory. The reason for this inventory increase is that the
real estate speculators who purchased looking for heavy increases in appreciation are now
selling their units and taking their profit. (#163) The other reason is when Buyers
purchased using Adjustable Rate Mortgages in 2004 to purchase their properties when
interest was around 5% now find that their rates are being adjusted upwards to close to
7%. These Sellers must get their price to pay off their mortgages.
(#115) Based on indicators on loans, investors for the second quarter of 2006 were
approximately 8% of the market. In 2004 estimates of investors and speculators were
around 20% and in 2005 investors share of the market plunged to around 5% This is a
welcome sign and shows the markets health in bringing back investors looking for long
term investment opportunity.
(#120) Purchasers who are single are continuing to trend upward comprising about 1/3 of
all homes purchased here in the valley.
(#118) While just under 5% of Buyers paid cash for their home purchases in this quarter.
(#121) 2/3rds of the Purchasers had no children. Indicating a growing trend towards an
aging market of Baby Boomers and an indicator of housing affordability issues in Las
Vegas.
Please note that the Bust predicted by media “Experts has not occurred in the Las Vegas
Market.” In fact indicators still show appreciation in the market place which is contrary
to the definition of a Bust.
The statistical information offered here was supplied by SalesTraq and housing analytics
company with offices based in Las Vegas Nevada.
If your interested in what trends are predicted for the Las Vegas area by the experts and
why. Please subscribe to my video news letter at email:Video@MaxSellsVegas.com.
Contact Max here NOW!
Prudential Americana Group, Realtors®
Max Schmidt P.C. dba Max Schmidt
Broker/Salesman
871 Coronado Center Dr., suite 100
Henderson, Nevada 89052
(702) 334-2200
